The Ensign Group Reports Third Quarter 2024 Results; Raises Annual Earnings and Revenue Guidance

Core Insights - The Ensign Group, Inc. reported strong financial results for Q3 2024, with GAAP diluted earnings per share of $1.34 and adjusted earnings per share of $1.39, reflecting significant year-over-year growth [1][2]. Financial Performance - GAAP net income reached $78.4 million, a 22.8% increase compared to the same quarter last year, while adjusted net income was $81.1 million, up 17.7% [2]. - Consolidated GAAP and adjusted revenue for the quarter were both $1.08 billion, marking a 15.0% increase from the prior year [3]. - Same Facilities and Transitioning Facilities occupancy rates increased by 2.8% and 4.8%, respectively, year-over-year [2][3]. Operational Highlights - The company added 53 new operations during the quarter, demonstrating effective integration of new acquisitions into existing clusters [4]. - Same store occupancy reached a record high of 81.7%, a 2.8% increase from the previous year, despite seasonal trends typically leading to lower occupancy [4]. - Managed care census grew by 9.1% and 23.2% for same store and transitioning operations, respectively, indicating strong performance across all payors [4]. Growth Strategy - The company is optimistic about unlocking further growth potential within its existing portfolio, emphasizing a strategy that does not solely rely on new acquisitions [5]. - Ensign is raising its annual 2024 earnings guidance to between $5.46 and $5.52 per diluted share, reflecting a more than 15.1% increase over 2023 results [6]. - The company continues to pursue acquisitions, with 27 operations acquired in 2024, and expects to close additional deals by year-end [6][7]. Real Estate and Portfolio Expansion - Ensign's portfolio now consists of 323 healthcare operations across 14 states, with 122 owned real estate assets [9]. - Recent acquisitions include several skilled nursing facilities in Colorado and other states, enhancing the company's operational footprint [7][8]. Liquidity and Financial Health - The company maintains strong liquidity with approximately $532.1 million in cash and $572.1 million available under its line of credit [6]. - A quarterly cash dividend of $0.06 per share was declared, continuing a long history of dividend payments [10].